The Reserve Bank of India (RBI) has issued draft Amendment Directions proposing to permit commercial banks to extend credit facilities to Real Estate Investment Trusts (REITs), subject to prudential safeguards and regulatory exposure ceilings. The proposal follows the February 6, 2026 Statement on Developmental and Regulatory Policies and seeks to align lending norms with risk management principles. Simultaneously, the RBI has proposed harmonisation of existing guidelines governing lending to Infrastructure Investment Trusts (InvITs), applicable to commercial banks, small finance banks, and All India Financial Institutions. The harmonised framework aims to ensure parity in prudential safeguards for REITs and InvITs, considering their similar organisational structures and risk profiles. Draft amendments also cover changes in credit facilities, concentration risk management, and financial statement disclosures. Stakeholders and regulated entities have been invited to submit comments by March 6, 2026, through the RBI’s “Connect 2 Regulate” platform or via email before finalisation of the regulatory framework.
Reserve Bank of India
RBI Issues Draft Amendment Directions for instructions on ‘Lending to Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs)’
In pursuance of the announcement made in the Statement on Developmental and Regulatory Policies dated February 6, 2026, the Reserve Bank of India has today issued the following draft Amendment Directions for public comments:
2. The above draft Amendment Directions propose to permit commercial banks to extend finance to REITs, subject to appropriate prudential safeguards including regulatory ceiling for exposure to REITs. The existing guidelines in respect of lending to InvITs (applicable to commercial banks, small finance banks and All India Financial Institutions) are also proposed to be harmonised for parity with prudential safeguards proposed for lending to REITs considering the similarity in organisational structure and risks.
3. The comments / feedback on the draft Amendment Directions may be submitted by the regulated entities and other stakeholders / members of public on or before March 6, 2026 through the following channels:
i. The ‘Connect 2 Regulate’ section on the website by following the corresponding hyperlink provided against each document in the page where they are hosted; or
ii. by email with the subject line ‘Feedback on (full name of the draft Amendment Directions (including the type of Regulated Entity))’.
(Brij Raj)
Chief General Manager
Press Release: 2025-2026/2116
